U.S.- based Brookfield Business Partners has bought a controlling interest in Genworth MI Canada Inc., Canada’s largest private mortgage insurer, for $2.4 billion.
Genworth provides mortgage default insurance for Canadian residential mortgage lenders.
"Genworth is an industry-leading business that generates strong, consistent earnings and operates in a sector with high barriers to entry," David Nowak, managing partner at Brookfield Business Partners, said in a statement.
"We look forward to partnering with management to support its ongoing success, drawing on our expertise in insurance and residential real estate."
The deal follows a failed attempt by China-based Oceanwide Holdings Group Co. to buy Genworth back in 2016—a deal nixed by the Canadian government.
“We are pleased to find such a high-calibre buyer for our interest in Genworth Canada," Tom McInerney, president and CEO of Genworth Financial, said in a statement.
The Brookfield deal is subject to customary approvals—including approval by Ottawa—but is expected to close by the end of the year.